The German government has offloaded another 1,300 Bitcoin (BTC) to major crypto exchanges today. According to data from Arkham Intelligence, the total offloading consisted of nearly $76 million. Moreover, the Bitcoin price dropped below $58,000 minutes after this massive liquidation and raised concerns of a further dip.
German Government’s Bitcoin Liquidation Spree
This recent liquidation involves the transfer of 500 BTC worth $29.05 million to Bitstamp, according to Arkham Intelligence. In addition, the German government also transferred 400 BTC worth $23.24 million to Coinbase, and another 400 BTC to Kraken.
In addition, the German government shifted a staggering 1,700 Bitcoin worth $98.76 million to an unknown wallet. This transaction also sparks speculations of an impending selloff as the government could use the new wallet for further BTC offloading. Earlier, a similar trend has been noted for the German government as it transferred Bitcoin to new addresses immediately after an exchange dump.
Moreover, this brings the total Bitcoin offloaded by the German government to nearly 10,000 BTC. As of now, the government holds 40,359 BTC worth $2.32 billion. The continuous liquidation of Bitcoin holdings by the German authorities highlights their ongoing efforts to manage and possibly reduce their exposure to the volatile crypto market. However, the actual motive behind these sell-offs isn’t clear yet.
Recent data from Arkham Intelligence indicates that the government transferred 832 BTC worth $50 million on July 2. Additionally, on the same day, another 361.877 BTC valued at $22.65 million was transferred to market maker Flow Traders. These significant movements reflect a strategic and systematic approach by the government in divesting its Bitcoin holdings.
Prior to the German government’s offloading of Bitcoin holdings that started on June 18, it held 50,000 BTC. These were seized from pirated movie site operators in early January, 2024. Moreover, now, the government has erased it’s BTC holdings by approximately 20%.
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BTC Price Struggles
In the last 24 hours, Bitcoin price has dipped by 4.88% to $57,504.57 at press time on Thursday, July 4. This decline mirrors the overall trend in the crypto market, which has fallen by 5.02%. Moreover, the German government’s selloff expedited the Bitcoin price decline.
Whilst, Bitcoin has recorded a trading volume of $36.48 billion, soaring by 58.71%. The BTC price has fluctuated between a high of $60,558.36 and a low of $57,338.45 during this period. Additionally, Bitcoin’s open interest has decreased by 4.25%, bringing its current value to $30.39 billion, according to Coinglass data.
Amid the German government dump, the BTC long liquidations surged to a whopping $78.79 million in the past 24 hours. These liquidations also catalyzed a significant downturn. Moreover, short liquidations accounted for $12.71 million, which wasn’t enough to balance the longs.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
